Tuesday, March 11, 2014

The Federal Maritime Commission on March 5 announced a
compromise deal with vessel-operating common carrier CSAV regarding allegations
that CSAV violated the Shipping Act by working with other ocean common carriers
under unfiled agreements.

The allegations involved shipments of automobiles and other
motorized vehicles on roll on/roll off (ro/ro) or specialized car carrier
vessels in various US import and export trades. The shipping agreements had not
been filed with the Commission or become effective under the Shipping Act,
according to the FMC.

Commission staff says the practices persisted over a period
of several years and involved numerous US trade lanes.

“The Shipping Act mandates that the Commission take
responsible actions to protect the shipping public,” Maritime Commission Chair
Mario Cordero said. “Carriers who fail to properly file with the Commission
their agreements affecting carrier working relationships in the US trades are
made liable for significant civil penalties, no matter the size of the trade or
the market share of the carrier involved.”

CSAV (Compania Sud Americana de Vapores S.A.) is based in
Chile. As a separate line of business, it operates ro/ro vessels in US inbound
and outbound trades.

Under the agreement, the company wasn’t required to admit to
violations of the Shipping Act, but agreed to pay a $625,000 civil penalty and to
provide ongoing cooperation with other Commission investigations or enforcement
actions with respect to its activities.

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EDITORIAL

Pacific Maritime Magazine California Contributing Editor Karen Robes Meeks spent several years covering the ports of Los Angeles and Long Beach, California for the Long Beach Press-Telegram and our sister publication Fishermen’s News.